State Council report: China to maintain loose monetary policy, run property whitelist routinely
A State Council report submitted to China's legislature says the government will continue a moderately loose monetary policy and routinely operate a property sector whitelist mechanism. It outlines five priorities including financial supervision, support for the real economy, and risk management.
A State Council report on financial work has been submitted to the 25th session of the 14th National People's Congress Standing Committee for review, according to Hong Kong's RTHK. The report states that over the past year the financial system has improved its efficiency in serving the real economy, strengthened financial supervision, deepened reform and high-level opening up, and maintained financial stability and national financial security, achieving new progress. The government will consider five aspects in its next steps for financial work.
The report says that in continuing to implement a moderately loose monetary policy, authorities will use a combination of tools to maintain ample liquidity and continuously assess and improve the monetary policy framework. In further strengthening and improving financial supervision, they will crack down on illegal financial activities, explore the application of artificial intelligence in financial management and services, and enhance protection of financial consumer rights.
Authorities propose improving the adaptability of financial services to the real economy by perfecting the statistical and evaluation systems for the financial 'five major articles' and increasing financial support for the construction of the 'six networks', technological innovation, and small and micro enterprises. In steadily deepening financial reform and high-level opening up, they will expand international use of the renminbi, encourage more foreign institutions and long-term capital to operate in China, and accelerate the construction and development of an independent, controllable renminbi cross-border payment system.
Regarding the steady resolution of risks in key areas, the report proposes implementing monetary policy tools that support the capital markets, ensuring financial support for the exit of financing platforms and their post-market transformation, and routinely operating the real estate 'whitelist' mechanism.